Greaves Electric allots 35.80% stake to Abdul Latif Jameel for his USD 150-mn capital infusion

Greaves Electric Mobility has allotted 35.80% stake to global investor Abdul Latif Jameel for his USD 150-million capital infusion in the company, by way of preferential allotment through private placement basis.

Greaves Electric Mobility Pvt Ltd, which manufactures two and three-wheelers, is the e-mobility subsidiary of diversified engineering company Greaves Cotton.

"The company has allotted 68,35,450 equity shares of face value Rs 10 each representing 35.80% shareholding in the company on a fully diluted basis, to Abdul Latif Jameel, by way of preferential allotment through private placement basis for a share subscription consideration of Rs 1,171 crores (USD 150 million)," the company said in a late evening statement on Thursday.

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Following the allotment, the company continues to be a subsidiary of Greaves Cotton Ltd and the resultant shareholding of Greaves Cotton Ltd in the company on a fully diluted basis is now 61.38%, it said.

The proceeds from this investment will be used to develop new products, associated technologies, and brand awareness, aiming to transform the company into a leading global EV manufacturer, Greaves Electric said.

The investment aims to support the company as it transitions into the next phase of growth, it added.

On June 2, Greaves Electric had announced that Saudi Arabia-based global investor Abdul Latif Jameel has committed to invest up to USD 220-million in the company, and as a part of the deal, Jameel will initially infuse USD 150-million for a 35.8% stake in the company, making it the second-largest shareholder in the firm.

Greaves Electric manufactures e-two-wheelers under the brand name of Ampere Vehicles and three-wheeler vehicles (e-auto and e-rickshaw) under the mobility brands Ele and Teja, respectively.